Crypto in Belgium: Binance makes a comeback!

After complying with the FSMA’s decision, the Belgian regulator for cryptocurrencies and finance, Binance had to suspend its activities in the country back in June. Three months later, the world’s largest cryptocurrency exchange announces a triumphant return to Belgium. What has changed since then? Let’s delve into it.

Binance is once again serving Belgian crypto traders

Given the news surrounding the suspension of Binance’s activities across all Belgian territories, the FSMA’s verdict appeared final. However, the cryptocurrency exchange has just made an announcement that will reshape the financial landscape in Belgium.

Great news for our Belgian community 🇧🇪

We've now reopened registrations and access to #Binance products and services in Belgium. https://t.co/IActiqYMjm

— Binance (@binance) September 25, 2023

This news came in late yesterday evening. According to Cointelegraph, Binance has reopened registrations and access to its cryptocurrency products and services for Belgian investors.

Three months had passed without them being able to access these amenities legally. In June, the Belgian Financial Services and Markets Authority (FSMA) had accused Binance of violating Belgian laws against money laundering and terrorism financing.

The crypto regulator notably pointed out that CZ’s cryptocurrency exchange had allegedly offered cryptocurrency services “from countries that are not members of the European Economic Area.”

“Binance has failed to establish, in a documented and probative manner, that the virtual currency exchange services and legal currency exchange and custody wallet services offered and provided on Belgian territory are carried out through a legal entity subject to the law of another Member State of the European Economic Area,” read the FSMA’s statement at the time.

In the absence of an agreement with the Belgian financial watchdog, Binance had to withdraw its services to the detriment of local crypto enthusiasts.

Binance never really left!

Another article from Cointelegraph, dated late August, informed us that Binance had always managed to bypass the FSMA’s scrutiny. In other words, Belgian crypto traders consistently had access to the cryptocurrency exchange platform through its Polish branch, which purportedly complied with the “regulatory obligations” of users residing in Belgium.

The prerequisite was to submit KYC documents tailored to Poland.

Two months separate the cessation of Binance’s crypto activities from the presentation of this alternative. How did the BNB issuer get round FSMA’s injunctions?

This sentence explains the turnaround:

“[Binance could operate through] a legal entity subject to the law of another Member State of the European Economic Area.”

It is worth noting, however, that Binance, currently under scrutiny by U.S. crypto regulators, is not welcome in several European countries. For example, in July, the exchange had to halt its operations in the Netherlands due to a lack of a license. Europe seems to be playing a game of back and forth when it comes to this crypto giant.